Friday, January 06, 2006

Equity Index Annuities and Bonus Annuities

There are many times when we talk about being careful of the bonus annuity. Many people just can't understand that you don't get something for nothing. Am I completely against a bonus annuity---not necessarily. But the problem is, when people purchase annuities, they don't quite know what they are getting into. And they often think that the bonus annuity is just something the insurance company is doing as an incentive to get them involved in the annuity. Yes, sure it is, but there is a price. (The Proof is Below)

Well, often times the agents don't inform their clients neither. Below is a disclaimer on the bottom of an advertisement sent to agents from an insurance company. Yes, the bonus does cost something. And you had better be aware of that when you purchase one. If your agent isn't telling you this, you need to fire him. Remember, knowledge is power.


Bonus annuities like those described above may include annuitization requirements, longer vesting / surrender periods, lower caps, or other restrictions that are not included in similar annuities that don't offer a premium bonus feature.


Don't say we never told you. For more on 'Shocking Secrets About Your Annuity', please visit